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SEC Filings

10-K
RLJ LODGING TRUST filed this Form 10-K on 03/01/2019
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the senior secured notes in March 2018, the payoff of the Revolver in August 2018, and the payoff of an $85.0 million mortgage loan that encumbered one hotel property in November 2018.

Gain on Sale of Hotel Properties, net
 
During the year ended December 31, 2018, we recognized a net gain on the sale of hotel properties of $30.9 million, which was primarily due to a $30.3 million net gain from the sale of seven hotel properties and a parcel of land and a $0.7 million gain on sale as a result of satisfying certain post-closing obligations with respect to the sale of two hotel properties during the year ended December 31, 2016. During the year ended December 31, 2017, we recognized a net gain on the sale of hotel properties of $9.0 million, which was due to a $9.6 million gain on sale as a result of satisfying certain post-closing obligations with respect to the sale of two hotel properties during the year ended December 31, 2016 that was partially offset by a $0.6 million loss from the sale of one hotel property during the year ended December 31, 2017.

Gain on Extinguishment of Indebtedness, net

During the year ended December 31, 2018, we recognized a net gain on extinguishment of indebtedness of approximately $6.0 million. In March 2018, we recognized a $7.7 million gain on extinguishment of indebtedness, which was due to the early redemption of the senior secured notes. The gain on extinguishment of indebtedness related to the early redemption of the senior secured notes excludes $5.1 million related to two hotel properties that were sold during the year ended December 31, 2018, which is included in gain on sale of hotel properties, net, in the accompanying consolidated statement of operations and comprehensive income. In July 2018, we recognized a $1.7 million loss on extinguishment of indebtedness, which was due to the early payoff of a mortgage loan that encumbered a hotel property that was sold during the year ended December 31, 2018.

Gain on Settlement of an Investment in Loan
 
During the year ended December 31, 2017, we recognized a gain on settlement of an investment in loan of approximately $2.7 million as a result of the investment in loan maturing in September 2017.
 
Income Taxes
 
As part of our structure, we own TRSs that are subject to U.S. federal and state income taxes. Income tax expense decreased $33.3 million, or 79.1%, to $8.8 million for the year ended December 31, 2018 from $42.1 million for the year ended December 31, 2017. The decrease in income tax expense was primarily due to a decrease in the U.S. corporate income tax rate to 21% for the year ended December 31, 2018 as compared to 35% for the year ended December 31, 2017.


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